Consumer Credit Collector News - Return to Menu

As Debt Climbs to All-Time High, More Americans are Trapped by the New Rules of Money

NEW YORK, March 8 /PRNewswire/ -- The Federal Reserve announced on Monday that consumer debt has reached more than $2.1 trillion. "The average household now owes more than $7,000 in credit card debt," pointed out Elizabeth Warren, Harvard Law professor and co-author of ALL YOUR WORTH: The Ultimate Lifetime Money Plan (Free Press; March 7, 2005; $24.95). "To put that in perspective, a typical family now owes six hundred times more than their parents did. Today's families are choking on debt. Today's announcement from the Cambridge Consumer Debt Index that 45 percent of Americans are making minimum or no payments on their credit card balances shows how very deeply the problem runs," Warren points out.

Amelia Warren Tyagi, financial consultant and co-author of All Your Worth, argues that the new rules of money have led to so much debt. "Hard work and good intentions are no longer enough. In today's world, everyone needs a crash course in the new rules of money."

Warren & Tyagi leverage more than twenty years research to show Americans how to build a lifetime money plan that fits with today's rules. ALL YOUR WORTH includes specific steps to get out of debt and take control over money, including four keys to creating a personal debt repayment plan:

-- Find out why you are sinking into debt. Are you spending too much on the Must-Haves (rent, car payment, insurance) or too much on the Wants (eating out, new clothes)? It doesn't matter which purchases you charged on your credit card; focus on the real reason behind your debt problem so you can work toward debt-free living.

-- Start repaying the debt that bothers you the most. Are you staying away from family picnics because you're embarrassed about the money you borrowed from your mother-in-law? Then pay all you can on that debt first. Pay off your debts one at a time, starting with whichever debt will give you the most satisfaction when it's gone.

-- Throw everything at it. Drain your savings account, empty out your piggy bank, and sell stuff on eBay. Put everything you can toward jump-starting your debt payment, so you can see some fast progress.

-- Avoid back-sliding: Take the temptation out of your wallet. Cut up the credit cards and use cash instead.

"Many people know they need to get out of debt, but they feel overwhelmed, unsure of where to start. It is amazing what just a few strong steps toward debt repayment can do," notes Tyagi. "Getting out of debt is like losing ten pounds, only better. It feels terrific."

Elizabeth Warren and Amelia Warren Tyagi are available for interviews to discuss Americans' rising debt and how to build a plan to get out of it.

ALL YOUR WORTH: The Ultimate Lifetime Money Plan By Elizabeth Warren and Amelia Warren Tyagi

Published by Free Press/March 8, 2005/ ISBN: 0-7432-6987-X; PRICE: $24.95

---------------------------------------------------
Source: Professor Elizabeth Warren, Harvard Law School

You could seek credit counseling

By ANDREA PARIS

The American credit card crisis grows deeper each year, eroding the fabric of the American dream through increased debt and bankruptcy.

According to Federal Reserve data, since 1990 consumer debt has more than tripled from $214 billion to more than $750 billion. The savings rate has steadily declined and the number of people filing for bankruptcy is more than those filing for divorce.

Why?

"People don't total up their debt," Consumer Credit Counseling of Yakima executive director Geoff Baker said. "They may have several cards. The bills come in at different times. They incur late fees, and it all snowballs."

Baker said the majority of his clients are not willfully malicious with their credit. Usually it is quite the opposite.

What often happens, he said, is someone will have a medical emergency, or may lose his or her job, go through a divorce, or have addictive behavior problems like gambling.

"People don't understand how important it is to make proper payments," he said.

Baker said when an overextended person enters into Consumer Credit Counseling they can expect to be greeted with compassion from non-judgmental counselors who are there to work through a client's problems with them, Baker said.

"We encourage people to work through the program quickly," Baker said. "The goal, or debt ratio, is up to the individual."

Typically clients bring their financial statements to the office and set goals with their counselor. All this usually takes an hour or so to come up with a livable budget - or debt management plan - that works to pay that person's debt down. The service also will work with creditors on behalf of their clients.

But buyer beware. Not all credit counseling services are created equal.

Some dubious companies try to bilk consumers out of their already stretched-too-thin cash supply without actually offering any assistance, Baker said. He cautioned people to be sure the company has nonprofit status and belongs to an accredited and reputable financial organization before taking part in the program or handing over money and personal information.

"The program is a way to address behavior problems and is a way to get out of debt," Baker said.

Answer the Phone: Your Identity is on the Line

Beverly Hills, CA -- (ArriveNet - May 06, 2005) -- There hasn't been much good news in the battle against identity theft lately, with fraudsters staying one step ahead of the game. But don't panic, our old friend the telephone has come to the rescue.

We're all aware of the problem of identity theft, but did you know that your local pizza chain has had a solution for years? You recognize it as the system that prevents little Johnny from having twenty pizzas delivered to your door at midnight: the pizza chain calls you immediately after the order is placed to verify the validity of the order. Because little Johnny is afraid to be caught, he'll think twice about causing this pizza-related havoc.

TeleSign's patent-pending verification system has transferred this pizza concept to the high-tech world. It works like this: after filling out a form on a website, the user is prompted to enter his phone number. A robotic system then places a call to that number and speaks aloud a unique three digit code. Once that code is entered into the website, the authentication is complete. This system can be implemented at any point on a website: at registration, purchase, a specific time interval, or at the request of a user.

Email verification is the current standard for user authentication, but email may end up filtered, junked, bulked, or trashed. Because of spam, viruses, and phishing, email filtering has become so aggressive that even legitimate emails don't reach the inbox. But a telephone call cannot be stopped, making this the perfect time for the introduction of TeleSign’s solution.

The future of ecommerce is threatened by rampant fraud and lack of trust. TeleSign will force anonymous users to expose their faces by revealing their working phone numbers.

To try an interactive demo, visit (http://www.telesign.com/demo2/demo.asp) and have your phone ready.

For more information about TeleSign’s products and services, visit (http://www.telesign.com/demo2/) or email press2@telesign.com.

About TeleSign Corp.
TeleSign is a leader in innovative internet security solutions and provider of intelligent telephone-based verification solutions for any entity conducting business online where trust is essential and where fraud is a concern. TeleSign’s patent-pending Verification System provides a critical layer of security for the e-commerce world and is a proven deterrent against ill-intentioned web users. The company’s first product, the TeleSign Verification System, blends the latest internet, security and telephony technologies into a powerful new tool to combat fraud and enhance trust in e-business.

TeleSign Corp. seeks to provide simplified solutions for any company conducting business online where trust is essential and where fraud is a concern. TeleSign’s patent-pending Verification System provides a critical layer of security for the e-commerce world and is a proven deterrent against ill-intentioned web users. TeleSign’s Verification System is able to legitimize a web user’s claimed identification at a miniscule cost and with little inconvenience to all parties involved.

TeleSign’s Verification System is based upon the premise that ill-intentioned web users hesitate to disclose their working phone numbers. By placing a computer-generated telephone call coupled with a unique security code, we insist that a web user provide a legitimate telephone number or be rooted out. The company’s first product, the TeleSign Verification System, blends the latest internet, security and telephony technologies into a powerful new tool to combat fraud in e-commerce.

Visit http://www.telesign.com/demo2/ or call 310-276-5900 for more information.

TeleSign Corporation
Contact: Sam Gonen
Telephone: (310) 276-7843
Email: press2@telesign.com